I AM A BUNDLE OF HUMAN CAPITAL Lesson 9:

Human Capital “Skills” & “knowledge” “Skills”  Something a person can do “knowledge”  Awareness & Understanding of facts & relationships

Math Contest 6 volunteer contestants 6 volunteer contestants 6 timers 6 timers 6 checkers 6 checkers

The Contest = = 5694/123 = 5694/123 = 3428 x 495 = 3428 x 495 = 4982 – 2456 = 4982 – 2456 =

The Contest = 128, = 128, /123 = /123 = x 495 = 1,696, x 495 = 1,696, – 2456 = – 2456 = 2526

Contest Results ContestantTime # correct A3min2 B4:202 C2:233 D7:153 E3:443 F4:322

Evaluating Which Contestant Most Skilled Which Contestant Most Skilled List reasons Why? List reasons Why? Handling pressure Handling pressure Good math skills Good math skills Time management Time management Knows math facts Knows math facts Stayed focused Stayed focused Sense of self correcting Sense of self correcting

List Things Pigs Can Do:

List Things Pigs Can Do” 1. -take bath 2. -change tire 3. -build road 4. -row boat 5. -fly 6. -tie a tie 7. -clean 8. -climb trees 9. -play the piano 10. -leap 11. -rocket to the moon 12. -build a snow hog 13. -flew 14. -play bongoss 15. -can can 16. -make cake 17. -tickle 18. -stop wars 19. -serve tea 20. -stretch 21. -sled 22. -sing 23. -repairs 24. -rake 25. -tall truth 26. jump

Your Skills (Things you can do) _________________________ _________________________

Your Knowledge (Things you know) _________________________ _________________________

The I Can Can

Relative income: why? $5 million $50,000

What determines a person’s income? SUPPLY of and DEMAND for their HUMAN CAPITAL

High or Low Incomes High demand, low supply  High income High demand, low supply  High income low demand, High supply  low income low demand, High supply  low income Wage is Wage is the measurement of scarcity of particular types of workers. the measurement of scarcity of particular types of workers. If you want a high income, If you want a high income, develop skills and knowledge in high demand with low supply. develop skills and knowledge in high demand with low supply. Make yourself Scarce Make yourself Scarce

MAKE YOURSELF SCARCE!!!!

THE NEW LABOR MARKET That was then, this is now THEN NOW GLOBAL COMPETITON, RAPIDLY CHANGING TECHNOLOGY BASIC SKILLS REQUIRED: ASSEMBLY LINE

Job Application What can you do for Uncle Jed? Insert on this slide job application on page 123?? Or use in lesson 10, school improves human K?

Manufacturing Agriculture Service Knowledge Imagination Information The U.S. Economy

The Demand for Labor is a Derived Demand Business managers hire workers to produce a good or service that can be sold for a profit. Business managers hire workers to produce a good or service that can be sold for a profit. Product demand changes so particular jobs change. Product demand changes so particular jobs change. Transferable skills are useful. Transferable skills are useful. Education and training are ongoing. Education and training are ongoing.

Table I: Then and now The Information/ Knowledge Age Technology change Competition Type of production Role of workers Skill requirements Employment Learning span The Industrial Age Took years to accomplish Local, state, national Manufacturing Manual Laborer Strength, dexterity, stamina Lifetime with one employer Kindergarten-12th grade Months, weeks to accomplish Global Service, info, knowledge Designer, engineer, manager Scans (see Table II) Change jobs at least six times, careers three times Lifetime

The Principle of Exchange “Employers will hire workers if they gain more from hiring them than they give up.”

All other things being equal “higher education leads to higher income”

Dreams Deferred: Average Earnings and Education for Adults, 2002 Source: U.S. Census Bureau, Statistical Abstract of the United States:

If you want a good income, Develop marketable skills through: Develop marketable skills through: more education more education more training more training What skills are likely to be marketable? What skills are likely to be marketable? make yourself scarce.

Table II: SCANS 2000 (Labor) Secretary's Commission on Achieving Necessary Skills Skills Descriptions Basics Thinking Personal Interpersonal Systems Information Technology Resources Reading, writing, mathematics, listening, speaking Creative thinking, decision making, problem solving, knowing how to learn, reasoning Responsibility, self-esteem, sociability, self management, integrity Planning, organizing, monitoring, assessing, evaluating, adjusting Teamwork, teaching, serving clients/customers, leadership, negotiating, working with people of diverse cultural backgrounds Understand social, organizational and technological systems; monitor and correct systems Acquiring and evaluating, organizing and maintaining, interpreting and communicating, using computers to process information Selecting equipment and tools, applying technology to specific tasks, maintaining and troubleshooting technologies, learning new technologies

Basic Skills reading reading writing writing mathematics mathematics listening listening speaking speaking

Thinking Skills creative thinking creative thinking decision-making decision-making problem solving problem solving visualizing visualizing knowing how to learn knowing how to learn reasoning reasoning

Personal Qualities responsibility responsibility self--esteem self--esteem sociability sociability self-management self-management integrity integrity

Resource Allocation planning planning organizing organizing monitoring monitoring assessing assessing evaluating evaluating adjusting adjusting

Interpersonal Skills team skills team skills teaching teaching serving clients/customers serving clients/customers leadership leadership negotiating negotiating working with people of diverse cultural backgrounds working with people of diverse cultural backgrounds

Systems - Social, organizational, and technological understanding understanding monitoring monitoring correcting correcting

Information acquiring and evaluating acquiring and evaluating organizing and maintaining organizing and maintaining interpreting and communicating interpreting and communicating using computers to process using computers to process

Technology selecting selecting applying to specific tasks applying to specific tasks maintaining and troubleshooting maintaining and troubleshooting keeping up to date keeping up to date learning learning

To compete in a global economy, you will need these skills

The Mirror: An Incredibly Powerful Package of Human Capital!

You are the only one who can develop your human capital….. not your teachers, not your parents, Only YOU

The hiring decision and the constant search for substitutes Hire you? Hire you? Hire a different worker? Hire a different worker? Hire a machine? Hire a machine?

Question In the mid to late 19 th century, unskilled workers flooded the U.S. labor market. In the mid to late 19 th century, unskilled workers flooded the U.S. labor market. Due to high transportation costs to move west, many of these workers were “stuck” on the East Coast. Due to high transportation costs to move west, many of these workers were “stuck” on the East Coast. What would you expect would be true about their wages? What would you expect would be true about their wages? Does your answer suggest that employers were cruel and heartless? Does your answer suggest that employers were cruel and heartless?

MAKE YOURSELF SCARCE!!!!

Some Skills Reads Reads Writes Writes Counts, adds, subtracts Counts, adds, subtracts Listens Listens Speaks clearly, using proper grammar Speaks clearly, using proper grammar Accepts responsibility, doesn’t make excuses Accepts responsibility, doesn’t make excuses Completes work on time Completes work on time Uses a computer to accomplish tasks Cooperates with others to get a job done Cooperates with others at play Follows instructions Perseveres Teaches Works well alone

Human Capital Inventory

Teaching Human Capital Investing Hope: The Story of Cesar Chavez Investing Hope: The Story of Cesar Chavez A is for Abigail: An Almanac of Amazing Women A is for Abigail: An Almanac of Amazing Women Ten Queens: Portraits of Women of Power Ten Queens: Portraits of Women of Power Lives of Extraordinary Women Lives of Extraordinary Women Martin Luther King, Jr., George Washington, Mahatma Gandhi, Nelson Mandela, Jacques Cousteau, Dr. Jonas Salk, Che Guevara, Anne Frank, Mother Teresa, Lech Walesa, Dalai Lama Martin Luther King, Jr., George Washington, Mahatma Gandhi, Nelson Mandela, Jacques Cousteau, Dr. Jonas Salk, Che Guevara, Anne Frank, Mother Teresa, Lech Walesa, Dalai Lama

Who are your heroes? What did they achieve? What human capital enabled them to achieve what they did? ~